ANALYSIS
NQ100 Finds Support from PPIApr 14
FED Supports Silver's Medium-Term Upward Potential
With the first death from Covid-19 in China, the world's second-largest economy, since May, concerns that the Chinese government will revert to its decision to relax the measures are creating a demand for safe haven. On the other hand, hopes that the US Federal Reserve (FED) will be less aggressive in tightening monetary policy, with the headline consumer price index (CPI) in the USA falling to 7.7% on an annual basis in October, against the market's expectations of 8%, support the medium-term bullish potential of silver. Technically speaking, silver appears to continue its channel movement with the second bullish wave. As long as the level of 20.00, which is the psychological boundary line below, is maintained as support, the commodity is highly likely to recover up to 21.60 and then to 22.45 by defending the Fibonacci acceleration lines. In possible declines below 20.00, the 19.20 and 18.35 supports can be followed.
